Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 28, 2017 | |
Entity [Abstract] | ||
Entity Registrant Name | Aerohive Networks, Inc. | |
Entity Central Index Key | 1,372,414 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 53,873,669 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 34,619 | $ 34,346 |
Short-term investments | 45,613 | 42,408 |
Accounts receivable, net of allowance for doubtful accounts of $27 and $61 as of June 30, 2017 and December 31, 2016, respectively | 22,929 | 26,190 |
Inventories | 14,982 | 12,629 |
Prepaid expenses and other current assets | 7,128 | 6,289 |
Total current assets | 125,271 | 121,862 |
Property and equipment, net | 7,638 | 9,008 |
Goodwill | 513 | 513 |
Other assets | 5,375 | 5,100 |
Total assets | 138,797 | 136,483 |
CURRENT LIABILITIES: | ||
Accounts payable | 14,663 | 10,762 |
Accrued liabilities | 9,014 | 9,300 |
Debt, current | 0 | 20,000 |
Deferred revenue, current | 32,954 | 31,727 |
Total current liabilities | 56,631 | 71,789 |
Debt, non-current | 20,000 | 0 |
Deferred revenue, non-current | 34,957 | 34,177 |
Other liabilities | 1,795 | 1,829 |
Total liabilities | 113,383 | 107,795 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Preferred stock, par value of $0.001 per share - 25,000,000 shares authorized as of June 30, 2017 and December 31, 2016; no shares issued and outstanding as of June 30, 2017 and December 31, 2016 | 0 | 0 |
Common stock, par value of $0.001 per share - 500,000,000 shares authorized as of June 30, 2017 and December 31, 2016; 53,871,669 and 52,245,252 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively | 54 | 52 |
Additional paid–in capital | 268,929 | 258,063 |
Treasury stock - 573,406 and 364,627 shares as of June 30, 2017 and December 31, 2016, respectively | (3,159) | (2,139) |
Accumulated other comprehensive loss | (38) | (31) |
Accumulated deficit | (240,372) | (227,257) |
Total stockholders’ equity | 25,414 | 28,688 |
Total liabilities and stockholders’ equity | $ 138,797 | $ 136,483 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 27 | $ 61 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 53,871,669 | 52,245,252 |
Common stock, shares outstanding | 53,871,669 | 52,245,252 |
Treasury stock, shares outstanding | 573,406 | 364,627 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | ||||
Product | $ 32,046 | $ 39,536 | $ 58,916 | $ 71,992 |
Subscription and support | 10,254 | 8,095 | 19,735 | 15,767 |
Total revenue | 42,300 | 47,631 | 78,651 | 87,759 |
Cost of revenue | ||||
Product | 10,616 | 12,413 | 19,352 | 22,852 |
Subscription and support | 3,153 | 3,050 | 6,329 | 5,953 |
Total cost of revenue | 13,769 | 15,463 | 25,681 | 28,805 |
Gross profit | 28,531 | 32,168 | 52,970 | 58,954 |
Operating expenses: | ||||
Research and development | 9,222 | 10,562 | 18,772 | 20,772 |
Sales and marketing | 17,420 | 21,322 | 34,859 | 42,390 |
General and administrative | 5,489 | 7,725 | 11,786 | 15,620 |
Total operating expenses | 32,131 | 39,609 | 65,417 | 78,782 |
Operating loss | (3,600) | (7,441) | (12,447) | (19,828) |
Interest income | 164 | 117 | 304 | 236 |
Interest expense | (147) | (110) | (277) | (236) |
Other income (expense), net | (93) | 90 | (178) | 106 |
Loss before income taxes | (3,676) | (7,344) | (12,598) | (19,722) |
Provision for income taxes | 197 | 68 | 294 | 213 |
Net loss | $ (3,873) | $ (7,412) | $ (12,892) | $ (19,935) |
Net loss per share allocable to common stockholders, basic and diluted (USD per share) | $ (0.07) | $ (0.15) | $ (0.24) | $ (0.40) |
Weighted-average shares used in computing net loss per share, basic and diluted | 53,175,684 | 49,798,994 | 52,808,412 | 49,467,667 |
Stock-based compensation | $ 4,444 | $ 5,454 | $ 7,997 | $ 10,350 |
Cost of Sales | ||||
Operating expenses: | ||||
Stock-based compensation | 276 | 321 | 547 | 593 |
Research and development | ||||
Operating expenses: | ||||
Stock-based compensation | 1,065 | 1,366 | 1,753 | 2,711 |
Sales and marketing | ||||
Operating expenses: | ||||
Stock-based compensation | 1,501 | 2,063 | 2,795 | 3,831 |
General and administrative | ||||
Operating expenses: | ||||
Stock-based compensation | $ 1,602 | $ 1,704 | $ 2,902 | $ 3,215 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (3,873) | $ (7,412) | $ (12,892) | $ (19,935) |
Unrealized gain (loss) on available-for-sale investments, net of tax | (1) | 7 | (7) | 81 |
Comprehensive loss | $ (3,874) | $ (7,405) | $ (12,899) | $ (19,854) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (12,892) | $ (19,935) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,631 | 1,795 |
Stock-based compensation | 7,997 | 10,350 |
Other | (30) | 224 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 3,261 | (6,669) |
Inventories | (2,353) | (3,877) |
Prepaid expenses and other current assets | (839) | (4,470) |
Other assets | (275) | (202) |
Accounts payable | 4,105 | 1,095 |
Accrued liabilities | (289) | 5,097 |
Other liabilities | 53 | 226 |
Deferred revenue | 2,007 | 4,137 |
Net cash provided by (used in) operating activities | 2,376 | (12,229) |
Cash flows from investing activities | ||
Purchases of property and equipment | (466) | (735) |
Maturities of short-term investments | 18,600 | 11,400 |
Purchases of short-term investments | (21,782) | (4,592) |
Investment in privately held company | 0 | (1,500) |
Net cash provided by (used in) investing activities | (3,648) | 4,573 |
Cash flows from financing activities | ||
Proceeds from exercise of vested stock options | 709 | 353 |
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 2,390 | 2,890 |
Payment for shares withheld for tax withholdings on vesting of restricted stock units | (451) | (540) |
Payment to repurchase common stock | (1,020) | (1,451) |
Repayments of Long-term Capital Lease Obligations | (83) | 0 |
Net cash provided by financing activities | 1,545 | 1,252 |
Net increase (decrease) in cash and cash equivalents | 273 | (6,404) |
Cash and cash equivalents at beginning of period | 34,346 | 45,741 |
Cash and cash equivalents at end of period | 34,619 | 39,337 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 175 | 391 |
Interest paid | 267 | 249 |
Supplemental disclosure of noncash investing and financing activities | ||
Unpaid property and equipment purchases | $ 0 | $ 1,987 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Aerohive Networks, Inc. was incorporated in Delaware on March 15, 2006, and, together with its subsidiaries (the "Company"), has designed and developed a leading cloud and enterprise Wi-Fi solution that enables our customers to use the power of the Wi-Fi, cloud, analytics and applications to transform how they serve their customers. Our products include Wi-Fi access points, routers and switches required to build an edge-access network; a cloud services platform for centralized management; data collection and analytics; and applications that leverage the network to provide additional capabilities to the business and IT organizations. Together, these products, service platforms and applications create a simple, scalable, and secure solution to deliver a better-connected experience. The Company has offices in North America, Europe and Asia Pacific and employs staff around the world. Basis of Presentation and Consolidation The Company prepared the accompanying consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"), which includes the accounts of Aerohive Networks, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts the Company reported in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, among others, the best estimate of selling price ("BESP") of product, software and support services, determination of fair value of stock-based awards, inventory valuation, accounting for income taxes, including the valuation reserve on deferred tax assets and uncertain tax positions, allowance for sales reserves, allowance for doubtful accounts, and warranty costs. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. As the Company, cannot determine future events and their effects with precision, actual results could differ from these estimates and assumptions, and those differences could be material to the consolidated financial statements. Foreign Currency The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. The Company remeasures the transactions denominated in currencies other than the functional currency at the average exchange rate in effect during the period. At the end of each reporting period, the Company remeasures its subsidiaries’ monetary assets and liabilities to the U.S. dollar using exchange rates in effect at the end of the reporting period. The Company remeasures its non-monetary assets and liabilities at historical exchange rates. The Company records gains and losses related to remeasurement in other income(expense), net in the consolidated statements of operations. Foreign currency exchange losses have not been significant in any period presented and the Company has not undertaken any hedging transactions related to foreign currency exposure. Recently Adopted Accounting Pronouncements In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2015-11, Simplifying the Measurement of Inventory, which replaced the lower of cost or market test with the lower of cost or net realizable value test. The Company adopted this standard in the first quarter of fiscal 2017 with January 1, 2017 being the effective date of adoption. The adoption of this standard had no impact on the Company's consolidated financial statements for the periods presented and any prior periods. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which is intended to simplify several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted this standard in the first quarter of fiscal 2017 with January 1, 2017 being the effective date of adoption. This standard eliminates the requirement to delay the recognition of excess tax benefits until they reduce current taxes payable. Under this standard, previously unrecognized excess tax benefits shall be recognized on a modified retrospective basis. However, as of January 1, 2017, this had no impact on our accumulated deficit as the related U.S. deferred tax assets were fully offset by a valuation allowance. Additionally, the Company elected to account for forfeitures as they occur rather than estimate expected forfeitures using a modified retrospective transition method. Accordingly, the Company recorded a cumulative-effect adjustment of $0.2 million to accumulated deficit as of January 1, 2017. Further, ASU 2016-09 requires excess tax benefits to be presented as a component of operating cash flows rather than financing cash flows. We elected to adopt this requirement prospectively and accordingly, prior periods have not been adjusted. Excess tax benefits were not material for all periods presented. The adoption of this standard did not have a material impact on the condensed consolidated financial statements for the three and six months ended June 30, 2017. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from contracts with customers (Topic 606), which supersedes the revenue recognition requirements in Revenue Recognition (Topic 605) and most industry-specific guidance. This standard requires entities to recognize revenue when they transfer promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 deferring the effective date of this standard by one year to December 15, 2017, and, thus, the new standard will be effective for the Company on January 1, 2018. This standard may be adopted using either the full or modified retrospective methods. In April 2016 and May 2016, the FASB issued ASU 2016-10 and ASU 2016-12, respectively, which clarify guidance on identifying performance obligations, collectability criterion and noncash consideration. The Company preliminarily plans to adopt these standards on a full retrospective basis; however, the Company has not yet made a final decision on the adoption methodology and is currently in the process of determining the potential impact that these standards will have on the Company's consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which provides guidance for the recognition, measurement, presentation, and disclosure of financial assets and liabilities. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which supersedes the lease accounting requirements in Topic 840. This standard requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The standard also requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. This standard is effective beginning in fiscal year 2019. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments , which provides guidance to decrease the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company does not currently anticipate that the adoption of this standard will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment , which removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. An impairment charge will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The standard is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements. Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. The Company maintains cash equivalents in money market funds. The amount on deposit at any time with money market funds may exceed the insured limits provided on such funds. The Company sells its products primarily to channel partners, which include value-added resellers, or VARs, value-added distributors, or VADs, and Managed Service Providers, or MSPs. The Company’s accounts receivable are typically unsecured and are derived from revenue earned from customers located in the Americas, Europe, the Middle East and Africa, and Asia Pacific. The Company performs ongoing credit evaluations to determine customer credit, but generally does not require collateral from its customers. The Company maintains reserves for estimated credit losses and these losses have historically been within management’s expectations. The Company has entered into separate agreements with certain individual VADs that are part of a consolidated group of entities which collectively constitutes greater than 10% of the Company’s total revenue or gross accounts receivable balance for certain periods, as presented in the tables below. The percentages of revenue from a consolidated group of entities (VAD A) and from an individual entity (VAD B) greater than 10% of total consolidated revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 VAD A 13.9 % 13.9 % 14.4 % 13.6 % VAD B 18.2 % 12.6 % 18.8 % * * Less than 10% The percentages of receivables from VAD A and individual entities (VAD B and VAD C) greater than 10% of total consolidated accounts receivable were as follows: June 30, December 31, 2017 2016 VAD A 19.8 % 22.4 % VAD B 15.5 % 14.4 % VAD C 12.3 % 15.3 % * Less than 10% |
FAIR VALUE DISCLOSURE
FAIR VALUE DISCLOSURE | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURE | FAIR VALUE MEASUREMENTS The Company records its financial assets and liabilities at fair value. The Company categorizes these assets and liabilities based upon the level of judgment associated with inputs used to measure the fair value. The categories are as follows: Level 1 Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3 Unobservable inputs are used when little or no market data is available. The Company classified its cash equivalents and short-term marketable investments within Level 1 and Level 2 in the fair value hierarchy as of June 30, 2017 and December 31, 2016, respectively. Level 1 assets include highly liquid money market funds that are included in cash and cash equivalents. The Company generally classifies these instruments within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. Level 2 assets include U.S. treasuries, corporate securities, agency securities and commercial paper. The Company classifies these instruments as short-term investments unless their maturities are three months or less when purchased, in which case the Company includes them in cash and cash equivalents. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency, which the Company obtains from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets. As of June 30, 2017 , the Company held an investment in a privately held company, which the Company classified as a Level 3 investment in the fair value hierarchy (Note 3). The components of the Company’s Level 1 and Level 2 assets are as follows: June 30, 2017 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 14,249 — 14,249 14,249 — $ 14,249 $ — $ 14,249 $ 14,249 $ — Level 2: U.S. treasuries 22,507 (27 ) 22,480 — 22,480 Corporate securities 13,174 (11 ) 13,163 — 13,163 U.S. agency securities 5,991 — 5,991 2,995 2,996 Commercial paper 8,971 — 8,971 1,997 6,974 $ 50,643 $ (38 ) $ 50,605 $ 4,992 $ 45,613 Total $ 64,892 $ (38 ) $ 64,854 $ 19,241 $ 45,613 December 31, 2016 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 25,244 — 25,244 25,244 — $ 25,244 $ — $ 25,244 $ 25,244 — Level 2: U.S. treasuries 22,516 (19 ) 22,497 — 22,497 Corporate securities 7,353 (12 ) 7,341 — 7,341 Commercial paper 12,570 — 12,570 — 12,570 $ 42,439 $ (31 ) $ 42,408 $ — 42,408 Total $ 67,683 $ (31 ) $ 67,652 $ 25,244 $ 42,408 All Level 1 and 2 short-term investments the Company held as of June 30, 2017 and December 31, 2016, contractually mature within one year from these respective dates. Unrealized gains and losses related to these investments are due to interest rate fluctuations as opposed to credit quality. In addition, the Company does not intend to sell, and it is not more likely than not that the Company would be required to sell, these investments before recovery of their cost basis. As a result, there was no other-than-temporary impairment for these investments as of June 30, 2017 and December 31, 2016. |
CONSOLIDATED BALANCE SHEET COMP
CONSOLIDATED BALANCE SHEET COMPONENTS | 6 Months Ended |
Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
CONSOLIDATED BALANCE SHEET COMPONENTS | CONSOLIDATED BALANCE SHEET COMPONENTS Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following: June 30, December 31, 2017 2016 (in thousands) Deferred sales commissions, current portion $ 3,281 2,932 Prepaid expenses 2,731 2,032 Other 1,116 1,325 Total prepaid expenses and other current assets $ 7,128 $ 6,289 Property and Equipment, net Property and equipment, net consists of the following: June 30, December 31, Estimated Useful Lives 2017 2016 (in thousands) Computer and other equipment 3 years $ 1,902 $ 1,920 Manufacturing, research and development laboratory equipment 3 years 4,540 4,314 Software 2 to 5 years 8,217 8,217 Office furniture and equipment 3 to 7 years 2,053 2,070 Leasehold improvements shorter of useful life or lease term 1,008 1,008 Property and equipment, gross 17,720 17,529 Less: Accumulated depreciation and amortization (10,082 ) (8,521 ) Property and equipment, net $ 7,638 $ 9,008 The software category includes the capitalized internal-use software for the Company's cloud service platform. In April 2015, the Company completed and launched the next generation of its cloud services platform, and began to amortize these capitalized costs to cost of subscription and support revenue on a straight-line basis over an estimated useful life of the software of five years. Depreciation and amortization expense was $0.8 million and $0.9 million for the three months ended June 30, 2017 and 2016, respectively, and $1.6 million and $1.8 million for the six months ended June 30, 2017 and 2016, respectively. Office furniture and equipment classified under capital lease was $1.2 million at June 30, 2017 and December 31, 2016 respectively, and the related accumulated depreciation was $0.3 million and $0.2 million at June 30, 2017 and December 31, 2016 respectively. Other assets Other assets consist of the following: June 30, December 31, 2017 2016 (in thousands) Deferred sales commissions, non-current portion $ 3,338 $ 3,115 Investment in privately held company 1,500 1,500 Other 537 485 Total other assets $ 5,375 $ 5,100 In January 2016, the Company paid $1.5 million in cash to purchase a convertible note issued by a privately held company, which provides Wi-Fi application and analytics. In June 2017, the convertible note and accrued interest on the note converted into shares of preferred stock of the privately held company and the note was cancelled. The accrued interest on the note was immaterial for any period. The Company currently has no significant voting rights, investor rights or influence over the privately held company. Since the investment has no readily determinable market value, the Company has categorized it as a Level 3 asset in the fair value hierarchy. As of June 30, 2017 , the investment is carried at the value of original principal and the Company reviews such carried value quarterly for indicators of other-than-temporary impairment. The Company did not recognize an impairment for the three months ended June 30, 2017 and 2016, respectively, as there were no identified events or changes in circumstances that might have a significant adverse impact on the carrying values of the investment. Since the Company does not intend to liquidate this investment in the next 12 months , the Company has classified the investment as other assets on the condensed consolidated balance sheet. Accrued Liabilities Accrued liabilities consist of the following: June 30, December 31, 2017 2016 (in thousands) Accrued compensation $ 7,417 $ 7,230 Accrued expenses and other liabilities 1,022 1,445 Warranty liability, current portion 575 625 Total accrued liabilities $ 9,014 $ 9,300 Deferred Revenue Deferred revenue consists of the following: June 30, December 31, 2017 2016 (in thousands) Products $ 1,774 $ 1,220 Subscription and support 66,137 64,684 Total deferred revenue 67,911 65,904 Less: current portion of deferred revenue 32,954 31,727 Non-current portion of deferred revenue $ 34,957 $ 34,177 Warranty Liability The following table summarizes the activity related to the Company’s accrued liability for estimated future warranty: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Beginning balance $ 857 $ 997 $ 975 $ 978 Charges to operations 230 199 351 373 Obligations fulfilled (142 ) (103 ) (339 ) (207 ) Changes in existing warranty (15 ) (59 ) (57 ) (110 ) Total product warranties $ 930 $ 1,034 $ 930 $ 1,034 Current portion $ 575 $ 670 $ 575 $ 670 Non-current portion $ 355 $ 364 $ 355 $ 364 Changes in existing warranty reflect a combination of changes in expected warranty claims and changes in the related costs to service such claims. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Financing Agreements In June 2012, the Company entered into a revolving credit facility with Silicon Valley Bank (the "Revolving Credit Facility"). The Revolving Credit Facility is collateralized by substantially all of the Company’s property, other than intellectual property. Since January 1, 2016, the Revolving Credit Facility bears interest rate at the lesser of (i) LIBOR rate plus 1.75% or (ii) prime rate minus 1.0% . In March 2017, the Company further amended the Revolving Credit Facility to extend the maturity date by two years and reduce the minimum cash requirements. The weighted-average interest rate of the Revolving Credit Facility was 2.90% and 2.22% for the three months ended June 30, 2017 and 2016, respectively, and 2.74% and 2.37% for the six months ended June 30, 2017 and 2016, respectively. The Revolving Credit facility currently provides, among other things, (i) a maturity date of March 31, 2019; and (ii) a revolving line up to $20.0 million , subject to certain conditions. The Revolving Credit Facility contains customary negative covenants which, unless waived by the bank, limit the Company’s ability to, among other things, incur additional indebtedness, grant liens, make investments, repurchase stock, pay dividends, transfer assets and merge or consolidate, as well as requiring the Company to maintain a minimum adjusted quick ratio of 1.25 to 1.00 and minimum cash balances with the bank as of the last day of each month of $35.0 million . The Revolving Credit Facility also contains customary events of default, subject to customary cure periods for certain defaults, that include, among other things, non-payment defaults, covenant defaults, material judgment defaults, bankruptcy and insolvency defaults, cross-defaults to certain other material indebtedness, and defaults due to inaccuracy of representation and warranties. Upon an event of default, the lender may declare all or a portion of the outstanding obligations payable by the Company to be immediately due and payable and exercise other rights and remedies provided for under the Revolving Credit Facility. During the existence of an event of default, interest on the obligations under the Revolving Credit Facility could be increased by 5.0% . As of June 30, 2017 , the Company was in compliance with these covenants. As of June 30, 2017 , $20.0 million remains outstanding under the Revolving Credit Facility, and is classified as non-current liabilities in the condensed consolidated balance sheet. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Lease Commitments The Company currently leases its main office facility in Milpitas, California, which is set to expire in June 2023. In addition, the Company leases office space for its subsidiaries in the United Kingdom, the Netherlands, Korea and China under non-cancelable operating leases that expire at various times through August 2021. The Company has also entered into various lease agreements in other locations in the United States and globally to support its sales and research and development functions. The Company recognizes rent expense on a straight-line basis over the lease period. Future minimum lease payments by year under operating leases as of June 30, 2017 are as follows: Amount Year Ending December 31, (in thousands) 2017 (remaining six months) $ 875 2018 1,720 2019 1,262 2020 883 2021 887 Thereafter 1,315 Total $ 6,942 Rent expense was $0.5 million and $0.8 million for the three months ended June 30, 2017 and 2016, respectively, and was $1.0 million and $1.4 million for the six months ended June 30, 2017 and 2016. Capital Lease Obligations The Company has certain office furniture and equipment that are classified under capital leases. The terms of the capital leases range from three years to seven years. The interest is immaterial. Future minimum lease payments by year under capital lease obligations as of June 30, 2017 are as follows: Amount Year Ending December 31, (in thousands) 2017 (remaining six months) $ 93 2018 185 2019 176 2020 171 2021 168 Thereafter 244 Total $ 1,037 Less: current portion of capital lease obligations 183 Non-current portion of capital lease obligations $ 854 Manufacturing Commitments The Company subcontracts with manufacturing companies to manufacture its hardware products. The contract manufacturers procure components based on non-cancelable orders the Company places with them. If the Company cancels all or part of an order, the Company is liable to the contract manufacturers for the cost of the related components they purchased under such orders. As of June 30, 2017 and December 31, 2016, the Company had manufacturing commitments with contract manufacturers for inventory totaling approximately $6.2 million and $9.5 million , respectively. Contingencies The Company may be subject to legal proceedings and litigation arising from time to time. The Company will record a liability when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. The Company expects periodically to evaluate developments in its legal matters that could affect the amount of liability that it has previously accrued, if any, and make adjustments as appropriate. The Company exercises significant judgment to determine both likelihood of there being, and the estimated amount of, a loss related to such matters, and the Company’s judgment may be incorrect. The Company cannot reasonably determine in advance the outcome of any litigation proceeding. Until the final resolution of any such matter for which the Company may be required to accrue, the Company may have an exposure to loss in excess of the amount the Company has accrued, and such excess amount could be significant. The Company is currently engaged in the following separate litigations which allege that the Company’s products infringe certain patents. • Linex Technologies, or Linex, filed on March 19, 2013 a complaint in the U.S. District Court, Southern District of Florida, asserting that some or all of the Company’s products infringe U.S. Patents Nos. #6,493,377, or the ‘377 Patent, and #7,167,503, or the ’503 Patent. The Company filed an answer and counterclaims for declaratory judgment against Linex asserting that the Company’s products do not infringe the ‘377 and ‘503 Patents, and that the ‘377 and ‘503 Patents are, in any case, invalid and not enforceable. The Company separately filed with the U.S. Patent and Trademark Office, or the PTO, petitions to initiate reexamination of the ‘377 and ‘503 Patents, which the PTO granted. In the PTO reexaminations, all claims under the ‘377 and '503 Patents have been rejected and Linex has appealed the final rejections of the claims. This case is currently stayed pending the reexaminations. • Chrimar Systems, or Chrimar, filed in July 2015 a complaint in the U.S. District Court, Eastern District of Texas, asserting that certain of the Company’s products which utilize Power over Ethernet ("POE") functionality infringe United States Patent Nos. 8,155,012, or the '012 Patent, 8,902,760, or the '760 Patent, 8,942,107, or the '107 Patent and 9,019,838, or the '838 Patent. A jury trial was conducted in January 2017, following which the court entered an order finding non-infringement as to the Company's products under all patents in suit. The court subsequently entered a final judgment as to non-infringement under the patents in suit, which neither party challenged or appealed prior to the lapsing of the period for any such timely challenges or appeals. The Company separately filed with the PTO petitions to initiate reexamination of the '012 Patent and the '760 Patent, which petitions the PTO granted. The PTO has rejected all claims of the '012 Patent and is considering the Company's petition regarding the '760 Patent. • Mobile Telecommunications Technologies LLC, or Mobile, filed in May 2016 a complaint in the U.S. District Court, Eastern District of Texas, asserting that certain of the Company’s products which utilize MIMO systems or frequency structures and functionality infringe United States Patent Nos. 5,590,403, 5,659,891, and 5,915,210. The case was consolidated with several other cases involving the same patents and transferred to U.S. District Court, Delaware, for pretrial purposes. The Company intends to defend these lawsuits vigorously, and is not able to predict or estimate any range of reasonably possible loss related to these lawsuits. If these matters have an adverse outcome, they may have a material impact on the Company’s financial position, results of operations or cash flows. Guarantees The Company typically enters into agreements with its customers that contain indemnification provisions in the event of claims alleging that the Company’s products infringe the intellectual property rights of a third party. The Company has at its option and expense, the ability to resolve any infringement, replace product with a non-infringing product that is equivalent-in-function, or refund to the customers the total product price. These agreements also typically include guarantees of product and service performance. The Company has not recorded a liability related to these indemnification and guarantee provisions and the Company’s indemnification and guarantee provisions have not had any impact on the consolidated financial statements to date. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Common Stock reserved for Future Issuance As of June 30, 2017 , the Company had the following reserved shares of common stock for future issuance: June 30, 2017 Common stock reserved for future grant under the 2014 Equity Incentive Plan 6,645,767 Common stock reserved for future purchase under the 2014 Employee Stock Purchase Plan 2,012,431 Options and Restricted Stock Units issued and outstanding 10,396,671 Total reserved shares of common stock for future issuance 19,054,869 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION 2014 Equity Incentive Plan On March 26, 2014, the Company's 2014 Equity Incentive Plan ("2014 Plan") became effective. On March 27, 2014, the Company's earlier 2006 Global Share Plan ("2006 Plan") was terminated and all reserved-but-unissued shares under the 2006 Plan were added to the 2014 Plan and all shares underlying stock awards granted under the 2006 Plan that otherwise would return to the 2006 Plan instead were rolled into the 2014 Plan. The Company may not grant additional awards under the 2006 Plan, but the 2006 Plan will continue to govern outstanding awards previously granted under the 2006 Plan. The 2014 Plan provides for the grant of incentive stock options within the meaning of Section 422 of the Internal Revenue Code, only to employees of the Company or any parent or subsidiary of the Company, and for the grant of nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to employees, directors and consultants of the Company, and the employees and consultants of any parent or subsidiary of the Company. In January 2017, the Company effected an increase of 2,612,263 shares reserved under the 2014 Plan. As of June 30, 2017 , the Company had 6,645,767 total shares of common stock reserved and available for grant under the 2014 Plan. The following table summarizes the total number of shares available for grant under the 2014 Plan as of June 30, 2017 : Shares Available for Grant Balance, December 31, 2016 5,116,753 Authorized 2,612,263 Options granted — Options canceled 905,082 Awards granted (3,191,974 ) Awards canceled 1,203,643 Balance, June 30, 2017 6,645,767 Stock Options The following table summarizes the information about outstanding stock option activity: Options Outstanding Number of Underlying Outstanding Options Weighted Price Weighted Aggregate (in thousands) Balance, December 31, 2016 6,219,774 $ 6.15 6.42 $ 6,056 Options granted — — Options exercised (396,865 ) 1.75 Options canceled (905,082 ) 7.16 Balance, June 30, 2017 4,917,827 $ 6.31 5.85 $ 3,694 Options exercisable, June 30, 2017 3,743,487 $ 6.11 5.15 $ 3,689 The weighted-average grant-date fair value of options granted was $3.22 and $3.16 per share for the three and six months ended June 30, 2016, respectively, and the aggregate grant-date fair value of the Company's stock options granted was $2.6 million and $2.8 million for the three and six months ended June 30, 2016, respectively. There were no options granted during the three and six months ended June 30, 2017. The aggregate intrinsic value of stock options exercised was $0.8 million and $0.3 million for the three months ended June 30, 2017 and 2016, respectively, and $1.2 million and $0.7 million for the six months ended June 30, 2017 and 2016, respectively. The intrinsic value for each share underlying an option represents the difference between the option exercise price per share and the closing stock price of a share of the Company’s common stock. The total grant-date fair value of the options vested was $0.9 million and $1.3 million for the three months ended June 30, 2017 and 2016, respectively, and $1.9 million and $4.5 million for the six months ended June 30, 2017 and 2016. Restricted Stock Units The Company currently grants Restricted Stock Units ("RSUs") to certain employees and directors. The RSUs typically vest over a period of time, generally one to three years , and are subject to the participant’s continuing service to the Company over that period. Until vested, RSUs do not have the voting and dividend participation rights of common stock and the shares underlying the awards are not considered issued and outstanding. The following is a summary of the Company’s RSU activity and related information for the three months ended June 30, 2017 : Restricted Stock Units Outstanding Shares Weighted Average Fair Value Per Share Balance, December 31, 2016 4,365,670 $ 6.23 Awards granted 3,191,974 4.97 Awards vested (970,734 ) 5.09 Awards canceled (1,108,066 ) 6.20 Balance, June 30, 2017 5,478,844 $ 5.55 The weighted-average grant-date fair value of RSUs granted was $4.96 and $6.43 per share for the three months ended June 30, 2017 and 2016, respectively, and was $4.97 and $6.24 for the six months ended June 30, 2017 and 2016, respectively. The aggregate grant-date fair value of RSUs granted was $11.8 million and $16.9 million , respectively for the three months ended June 30, 2017 and 2016, respectively, and was $15.9 million and $19.0 million for the six months ended June 30, 2017 and 2016, respectively. The aggregate fair value of shares vested as of the respective vesting dates was $2.4 million and $3.4 million , respectively, for the three months ended June 30, 2017 and 2016 and was $4.6 million and $5.9 million , respectively for the six months ended June 30, 2017 and 2016. The number of RSUs vested includes shares that the Company withheld on behalf of certain employees to satisfy the minimum statutory tax withholding requirements, as determined by the Company. During the three months ended June 30, 2017 and 2016, the Company withheld 25,209 and 36,758 shares of stock, for an aggregate value of $0.1 million and $0.2 million , respectively. During the six months ended June 30, 2017 and 2016, the Company withheld 95,577 and 95,548 , for an aggregate value of 0.5 million and 0.5 million , respectively. The Company returned such shares to the 2014 Plan, which are available under the plan terms for future issuance. The number of RSUs granted includes 378,644 shares of performance-based restricted stock units ("PBRSUs") that the Company granted to certain executives in the first quarter of 2017 pursuant to the 2014 Plan. Each PBRSU represents the right to receive one share of the Company's common stock upon vesting, subject to the Company's achievement of certain performance conditions. At each reporting period, the Company assesses the probability of the number of these PBRSUs expected to vest based on its achievement of the performance condition. The number of RSUs granted also includes 358,000 shares of market-based restricted stock units (MBRSUs) that the Company granted to certain executives in June 2017 pursuant to the 2014 Plan. Each MBRSU represents the right to receive one share of the Company's common stock upon vesting subject to the Company's achievement of certain stock price targets. The Company estimated the fair value of the MBRSUs using the Monte Carlo option-pricing model on the date of grant as the MBRSUs contain both market and service conditions. The weighted average grant date fair value of these MBRSU's was $4.18 per share. The Company will record the total expense related to all of the MBRSUs on a graded-vesting method over the estimated term. 2014 Employee Stock Purchase Plan The 2014 Employee Stock Purchase Plan ("ESPP") is a ten-year plan, effective in March 2014. The ESPP authorizes the Company to issue shares of common stock pursuant to purchase rights it grants to the Company's employees and those of its designated subsidiaries. In January 2017, the Company effected an increase of 1,000,000 shares reserved under the ESPP. As of June 30, 2017 , the Company had 2,012,431 total shares of common stock reserved and available for issuance under the ESPP. Under the ESPP, the Company grants stock purchase rights to all eligible employees, currently covering a one -year offering period ending December 1, 2017, with purchase dates at the end of each interim six-month purchase period. Employees purchase shares using employee payroll deductions at purchase prices equal to 85% of the lesser of the fair market value of the Company’s common stock at either the first day of each offering period or the date of purchase. The ESPP currently has a reset provision: If the closing price of the Company’s common stock on the last day of any purchase period during an offering period is lower than the closing sales price on the first day of the related offering period, that offering period will terminate upon the purchase of shares for such purchase period and participants will be automatically re-enrolled in the immediately following offering period. As a result, the reference price for purposes of determining the purchase price of shares for subsequent purchase periods for all participants of the new offering period resets to such lower price. No participant may purchase more than $25,000 worth of common stock in any calendar year, or 5,000 shares of common stock in any six-month purchase period. For the six months ended June 30, 2017 and 2016, the Company issued 563,174 and 646,278 shares, under the ESPP plan, respectively. Stock Repurchase Program In February 2016, the Company's board of directors authorized a stock repurchase program of up to $10.0 million , with stock purchases made from time to time in compliance with applicable securities laws in the open market or in privately negotiated transactions. The timing and amounts of any purchases will be based on market conditions and other factors including price, regulatory requirements and capital availability. The authorization does not require the purchase of any minimum number of shares, and the Company may suspend, modify or discontinue the program at any time without prior notice. In August 2017, our board of directors extended this program to June 30, 2018 . As of June 30, 2017, we had repurchased under this program 573,406 shares of our common stock at a total price $3.2 million average purchase price $5.51 per share of our common stock. Approximately $6.8 million remains available as of June 30, 2017 for repurchases under this program. We are not obligated to repurchase any minimum or specific number or dollar amount of shares, and we may suspend or terminate the program at any time before its expiration as of June 30, 2018. During the six months ended June 30, 2017 , the Company repurchased a total of 208,779 shares of its common stock on the open market at a total cost of $1.0 million with an average price per share of $4.88 . During the six months ended June 30, 2016, the Company repurchased a total of 261,515 shares at a total cost of $1.5 million with an average price per share of $5.55 . Determination of Fair Values Weighted-average assumptions for the Company's stock options granted were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Stock options: Expected term (in years) N/A 5.77 N/A 5.78 Expected volatility N/A 55.11 % N/A 55.16 % Risk free interest rate N/A 1.50 % N/A 1.50 % Weighted-average assumptions to value MBRSUs under the Monte Carlo model were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 MBRSUs: Expected volatility 46 % 53 % 46 % 53 % Risk free interest rate 1.45 % 1.07 % 1.45 % 1.07 % Weighted-average assumptions to value employee stock purchase rights under the Black-Scholes model were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 ESPP purchase rights: Expected term (in years) 0.50 - 1.00 0.50 - 2.00 0.50 - 1.00 0.50 - 2.00 Expected volatility 34% - 39% 35% - 55% 34% - 39% 35% - 55% Risk free interest rate 0.60% - 1.07% 0.07% - 0.51% 0.60% - 1.07% 0.07% - 0.51% Stock-based Compensation Expense The total stock-based compensation the Company recognized for stock-based awards in the consolidated statements of operations is as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Cost of revenue $ 276 $ 321 $ 547 $ 593 Research and development 1,065 1,366 1,753 2,711 Sales and marketing 1,501 2,063 2,795 3,831 General and administrative 1,602 1,704 2,902 3,215 Total stock-based compensation $ 4,444 $ 5,454 $ 7,997 $ 10,350 The following table presents stock-based compensation expense by award-type: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Stock Options $ 820 $ 1,185 $ 1,703 $ 2,331 Restricted Stock Units 3,193 3,544 5,463 6,691 Employee Stock Purchase Plan 431 725 831 1,328 Total stock-based compensation $ 4,444 $ 5,454 $ 7,997 $ 10,350 As of June 30, 2017 , unrecognized stock-based compensation related to outstanding stock options, RSUs and ESPP purchase rights, was $3.9 million , $26.9 million and $1.0 million , respectively, which the Company expects to recognize over weighted-average periods of 1.82 years , 2.24 years and 0.42 years , respectively. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE The Company calculates basic and diluted net loss per share by dividing the net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is the same as basic net loss per share, since the effects of potentially dilutive securities are antidilutive. The following table presents the computation of basic and diluted net loss per share: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands, except for share and per share data) Numerator: Net loss $ (3,873 ) $ (7,412 ) $ (12,892 ) $ (19,935 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 53,175,684 49,798,994 52,808,412 49,467,667 Net loss per share: Basic and diluted $ (0.07 ) $ (0.15 ) $ (0.24 ) $ (0.40 ) The Company excluded the following period-end outstanding common stock equivalents from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: As of June 30, 2017 2016 Shares of common stock issuable under the Equity Incentive Plan 10,396,671 12,397,881 Employee Stock Purchase Plan 96,199 99,054 Total 10,492,870 12,496,935 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes was approximately $0.2 million and $0.1 million , respectively, for the three months ended June 30, 2017 and 2016 and was $0.3 million and $0.2 million , respectively, for the six months ended June 30, 2017 and 2016. The provision for income taxes consisted primarily of state taxes and foreign income taxes. For the three and six months ended June 30, 2017 and 2016, the provision for income taxes differed from the statutory amount primarily due to the Company's maintaining a full valuation allowance against the U.S. net deferred tax assets, partially offset by foreign and state taxes. The Company has intercompany services agreements with its subsidiaries located in the United Kingdom, the Netherlands, New Zealand, Australia, Canada and China, which require payment for services rendered by these subsidiaries at an arm’s-length transaction price. The foreign tax expense represents foreign income tax payable by these subsidiaries on profit generated on intercompany services agreements. The Company's realization of deferred tax assets depends on future taxable income, the existence and timing of which is uncertain. Based on the Company’s history of losses, management has determined it cannot conclude that it is more likely than not that the deferred tax assets will be realized and, accordingly, management has placed a full valuation allowance against its domestic deferred tax assets, including net operating loss carryforwards and research and development and other tax credits, as of June 30, 2017 and December 31, 2016, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company’s chief operating decision maker ("CODM") is its Chief Executive Officer. The Company derives its revenue primarily from sales of products and subscription and support services. The Company’s CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company determined that it operates as one reportable and operating segment. The following table represents the Company's revenue based on the billing address of the respective channel partners: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Americas $ 29,141 $ 28,685 $ 53,059 $ 53,045 Europe, Middle East and Africa 10,397 12,143 20,230 24,157 Asia Pacific 2,762 6,803 5,362 10,557 Total revenues $ 42,300 $ 47,631 $ 78,651 $ 87,759 Included within Americas in the above table is revenue from sales in the United States of $27.2 million and $27.4 million , respectively, for the three months ended June 30, 2017 and 2016, and $49.2 million and $50.2 million , respectively, for the six months ended June 30, 2017 and 2016. Aside from the United States, no country comprised 10% or more of the Company's total revenue for each of the three months ended June 30, 2017 and 2016. Property and equipment, net by location is summarized as follows: June 30, December 31, 2017 2016 (in thousands) United States $ 6,446 $ 7,685 People's Republic of China 1,014 1,096 United Kingdom 178 227 Total property and equipment, net $ 7,638 $ 9,008 |
DESCRIPTION OF BUSINESS AND S17
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Aerohive Networks, Inc. was incorporated in Delaware on March 15, 2006, and, together with its subsidiaries (the "Company"), has designed and developed a leading cloud and enterprise Wi-Fi solution that enables our customers to use the power of the Wi-Fi, cloud, analytics and applications to transform how they serve their customers. Our products include Wi-Fi access points, routers and switches required to build an edge-access network; a cloud services platform for centralized management; data collection and analytics; and applications that leverage the network to provide additional capabilities to the business and IT organizations. Together, these products, service platforms and applications create a simple, scalable, and secure solution to deliver a better-connected experience. The Company has offices in North America, Europe and Asia Pacific and employs staff around the world. |
Basis of Presentation | The Company prepared the accompanying consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"), which includes the accounts of Aerohive Networks, Inc. and its wholly owned subsidiaries. |
Consolidation | All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts the Company reported in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, among others, the best estimate of selling price ("BESP") of product, software and support services, determination of fair value of stock-based awards, inventory valuation, accounting for income taxes, including the valuation reserve on deferred tax assets and uncertain tax positions, allowance for sales reserves, allowance for doubtful accounts, and warranty costs. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. As the Company, cannot determine future events and their effects with precision, actual results could differ from these estimates and assumptions, and those differences could be material to the consolidated financial statements |
Foreign Currency | Foreign Currency The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. The Company remeasures the transactions denominated in currencies other than the functional currency at the average exchange rate in effect during the period. At the end of each reporting period, the Company remeasures its subsidiaries’ monetary assets and liabilities to the U.S. dollar using exchange rates in effect at the end of the reporting period. The Company remeasures its non-monetary assets and liabilities at historical exchange rates. The Company records gains and losses related to remeasurement in other income(expense), net in the consolidated statements of operations. Foreign currency exchange losses have not been significant in any period presented and the Company has not undertaken any hedging transactions related to foreign currency exposure. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2015-11, Simplifying the Measurement of Inventory, which replaced the lower of cost or market test with the lower of cost or net realizable value test. The Company adopted this standard in the first quarter of fiscal 2017 with January 1, 2017 being the effective date of adoption. The adoption of this standard had no impact on the Company's consolidated financial statements for the periods presented and any prior periods. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which is intended to simplify several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted this standard in the first quarter of fiscal 2017 with January 1, 2017 being the effective date of adoption. This standard eliminates the requirement to delay the recognition of excess tax benefits until they reduce current taxes payable. Under this standard, previously unrecognized excess tax benefits shall be recognized on a modified retrospective basis. However, as of January 1, 2017, this had no impact on our accumulated deficit as the related U.S. deferred tax assets were fully offset by a valuation allowance. Additionally, the Company elected to account for forfeitures as they occur rather than estimate expected forfeitures using a modified retrospective transition method. Accordingly, the Company recorded a cumulative-effect adjustment of $0.2 million to accumulated deficit as of January 1, 2017. Further, ASU 2016-09 requires excess tax benefits to be presented as a component of operating cash flows rather than financing cash flows. We elected to adopt this requirement prospectively and accordingly, prior periods have not been adjusted. Excess tax benefits were not material for all periods presented. The adoption of this standard did not have a material impact on the condensed consolidated financial statements for the three and six months ended June 30, 2017. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from contracts with customers (Topic 606), which supersedes the revenue recognition requirements in Revenue Recognition (Topic 605) and most industry-specific guidance. This standard requires entities to recognize revenue when they transfer promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 deferring the effective date of this standard by one year to December 15, 2017, and, thus, the new standard will be effective for the Company on January 1, 2018. This standard may be adopted using either the full or modified retrospective methods. In April 2016 and May 2016, the FASB issued ASU 2016-10 and ASU 2016-12, respectively, which clarify guidance on identifying performance obligations, collectability criterion and noncash consideration. The Company preliminarily plans to adopt these standards on a full retrospective basis; however, the Company has not yet made a final decision on the adoption methodology and is currently in the process of determining the potential impact that these standards will have on the Company's consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which provides guidance for the recognition, measurement, presentation, and disclosure of financial assets and liabilities. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which supersedes the lease accounting requirements in Topic 840. This standard requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The standard also requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. This standard is effective beginning in fiscal year 2019. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments , which provides guidance to decrease the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company does not currently anticipate that the adoption of this standard will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment , which removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. An impairment charge will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The standard is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements. |
Concentrations of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. The Company maintains cash equivalents in money market funds. The amount on deposit at any time with money market funds may exceed the insured limits provided on such funds. The Company sells its products primarily to channel partners, which include value-added resellers, or VARs, value-added distributors, or VADs, and Managed Service Providers, or MSPs. The Company’s accounts receivable are typically unsecured and are derived from revenue earned from customers located in the Americas, Europe, the Middle East and Africa, and Asia Pacific. The Company performs ongoing credit evaluations to determine customer credit, but generally does not require collateral from its customers. The Company maintains reserves for estimated credit losses and these losses have historically been within management’s expectations. |
DESCRIPTION OF BUSINESS AND S18
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percentage of Revenue from Individual Customers | he percentages of revenue from a consolidated group of entities (VAD A) and from an individual entity (VAD B) greater than 10% of total consolidated revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 VAD A 13.9 % 13.9 % 14.4 % 13.6 % VAD B 18.2 % 12.6 % 18.8 % * * Less than 10% The percentages of receivables from VAD A and individual entities (VAD B and VAD C) greater than 10% of total consolidated accounts receivable were as follows: June 30, December 31, 2017 2016 VAD A 19.8 % 22.4 % VAD B 15.5 % 14.4 % VAD C 12.3 % 15.3 % * Less than 10% |
FAIR VALUE DISCLOSURE (Tables)
FAIR VALUE DISCLOSURE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities measured at fair value on a recurring basis | The components of the Company’s Level 1 and Level 2 assets are as follows: June 30, 2017 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 14,249 — 14,249 14,249 — $ 14,249 $ — $ 14,249 $ 14,249 $ — Level 2: U.S. treasuries 22,507 (27 ) 22,480 — 22,480 Corporate securities 13,174 (11 ) 13,163 — 13,163 U.S. agency securities 5,991 — 5,991 2,995 2,996 Commercial paper 8,971 — 8,971 1,997 6,974 $ 50,643 $ (38 ) $ 50,605 $ 4,992 $ 45,613 Total $ 64,892 $ (38 ) $ 64,854 $ 19,241 $ 45,613 December 31, 2016 Amortized Cost Gross Unrealized Gain (Loss) Estimated Fair Value Cash equivalents Short-term investments (in thousands) Level 1: Money market funds 25,244 — 25,244 25,244 — $ 25,244 $ — $ 25,244 $ 25,244 — Level 2: U.S. treasuries 22,516 (19 ) 22,497 — 22,497 Corporate securities 7,353 (12 ) 7,341 — 7,341 Commercial paper 12,570 — 12,570 — 12,570 $ 42,439 $ (31 ) $ 42,408 $ — 42,408 Total $ 67,683 $ (31 ) $ 67,652 $ 25,244 $ 42,408 |
CONSOLIDATED BALANCE SHEET CO20
CONSOLIDATED BALANCE SHEET COMPONENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: June 30, December 31, 2017 2016 (in thousands) Deferred sales commissions, current portion $ 3,281 2,932 Prepaid expenses 2,731 2,032 Other 1,116 1,325 Total prepaid expenses and other current assets $ 7,128 $ 6,289 |
Schedule of Property and Equipment | Property and equipment, net consists of the following: June 30, December 31, Estimated Useful Lives 2017 2016 (in thousands) Computer and other equipment 3 years $ 1,902 $ 1,920 Manufacturing, research and development laboratory equipment 3 years 4,540 4,314 Software 2 to 5 years 8,217 8,217 Office furniture and equipment 3 to 7 years 2,053 2,070 Leasehold improvements shorter of useful life or lease term 1,008 1,008 Property and equipment, gross 17,720 17,529 Less: Accumulated depreciation and amortization (10,082 ) (8,521 ) Property and equipment, net $ 7,638 $ 9,008 |
Schedule of Other Assets | Other assets consist of the following: June 30, December 31, 2017 2016 (in thousands) Deferred sales commissions, non-current portion $ 3,338 $ 3,115 Investment in privately held company 1,500 1,500 Other 537 485 Total other assets $ 5,375 $ 5,100 |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: June 30, December 31, 2017 2016 (in thousands) Accrued compensation $ 7,417 $ 7,230 Accrued expenses and other liabilities 1,022 1,445 Warranty liability, current portion 575 625 Total accrued liabilities $ 9,014 $ 9,300 |
Summary of Deferred Revenue | Deferred revenue consists of the following: June 30, December 31, 2017 2016 (in thousands) Products $ 1,774 $ 1,220 Subscription and support 66,137 64,684 Total deferred revenue 67,911 65,904 Less: current portion of deferred revenue 32,954 31,727 Non-current portion of deferred revenue $ 34,957 $ 34,177 |
Schedule of Product Warranty Liability | The following table summarizes the activity related to the Company’s accrued liability for estimated future warranty: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Beginning balance $ 857 $ 997 $ 975 $ 978 Charges to operations 230 199 351 373 Obligations fulfilled (142 ) (103 ) (339 ) (207 ) Changes in existing warranty (15 ) (59 ) (57 ) (110 ) Total product warranties $ 930 $ 1,034 $ 930 $ 1,034 Current portion $ 575 $ 670 $ 575 $ 670 Non-current portion $ 355 $ 364 $ 355 $ 364 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payment by Year Under Operating Leases | Future minimum lease payments by year under operating leases as of June 30, 2017 are as follows: Amount Year Ending December 31, (in thousands) 2017 (remaining six months) $ 875 2018 1,720 2019 1,262 2020 883 2021 887 Thereafter 1,315 Total $ 6,942 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments by year under capital lease obligations as of June 30, 2017 are as follows: Amount Year Ending December 31, (in thousands) 2017 (remaining six months) $ 93 2018 185 2019 176 2020 171 2021 168 Thereafter 244 Total $ 1,037 Less: current portion of capital lease obligations 183 Non-current portion of capital lease obligations $ 854 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of shares reserved for future issuance | As of June 30, 2017 , the Company had the following reserved shares of common stock for future issuance: June 30, 2017 Common stock reserved for future grant under the 2014 Equity Incentive Plan 6,645,767 Common stock reserved for future purchase under the 2014 Employee Stock Purchase Plan 2,012,431 Options and Restricted Stock Units issued and outstanding 10,396,671 Total reserved shares of common stock for future issuance 19,054,869 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of total shares available for grant | The following table summarizes the total number of shares available for grant under the 2014 Plan as of June 30, 2017 : Shares Available for Grant Balance, December 31, 2016 5,116,753 Authorized 2,612,263 Options granted — Options canceled 905,082 Awards granted (3,191,974 ) Awards canceled 1,203,643 Balance, June 30, 2017 6,645,767 |
Summary of shares available for grant and outstanding stock option activity | The following table summarizes the information about outstanding stock option activity: Options Outstanding Number of Underlying Outstanding Options Weighted Price Weighted Aggregate (in thousands) Balance, December 31, 2016 6,219,774 $ 6.15 6.42 $ 6,056 Options granted — — Options exercised (396,865 ) 1.75 Options canceled (905,082 ) 7.16 Balance, June 30, 2017 4,917,827 $ 6.31 5.85 $ 3,694 Options exercisable, June 30, 2017 3,743,487 $ 6.11 5.15 $ 3,689 |
Summary of RSU activity and related information | summary of the Company’s RSU activity and related information for the three months ended June 30, 2017 : Restricted Stock Units Outstanding Shares Weighted Average Fair Value Per Share Balance, December 31, 2016 4,365,670 $ 6.23 Awards granted 3,191,974 4.97 Awards vested (970,734 ) 5.09 Awards canceled (1,108,066 ) 6.20 Balance, June 30, 2017 5,478,844 $ 5.55 |
Summary of the assumptions related to stock options | Weighted-average assumptions for the Company's stock options granted were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Stock options: Expected term (in years) N/A 5.77 N/A 5.78 Expected volatility N/A 55.11 % N/A 55.16 % Risk free interest rate N/A 1.50 % N/A 1.50 % |
Schedule of share based payment award, equity other than options, valuation [Table Text Block] | Weighted-average assumptions to value MBRSUs under the Monte Carlo model were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 MBRSUs: Expected volatility 46 % 53 % 46 % 53 % Risk free interest rate 1.45 % 1.07 % 1.45 % 1.07 % |
Weighted average assumptions used to value employee stock purchase rights | Weighted-average assumptions to value employee stock purchase rights under the Black-Scholes model were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 ESPP purchase rights: Expected term (in years) 0.50 - 1.00 0.50 - 2.00 0.50 - 1.00 0.50 - 2.00 Expected volatility 34% - 39% 35% - 55% 34% - 39% 35% - 55% Risk free interest rate 0.60% - 1.07% 0.07% - 0.51% 0.60% - 1.07% 0.07% - 0.51% |
Schedule of stock-based awards granted in the consolidated statements of operations | The total stock-based compensation the Company recognized for stock-based awards in the consolidated statements of operations is as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Cost of revenue $ 276 $ 321 $ 547 $ 593 Research and development 1,065 1,366 1,753 2,711 Sales and marketing 1,501 2,063 2,795 3,831 General and administrative 1,602 1,704 2,902 3,215 Total stock-based compensation $ 4,444 $ 5,454 $ 7,997 $ 10,350 The following table presents stock-based compensation expense by award-type: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Stock Options $ 820 $ 1,185 $ 1,703 $ 2,331 Restricted Stock Units 3,193 3,544 5,463 6,691 Employee Stock Purchase Plan 431 725 831 1,328 Total stock-based compensation $ 4,444 $ 5,454 $ 7,997 $ 10,350 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Income (Loss) per Share | The following table presents the computation of basic and diluted net loss per share: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands, except for share and per share data) Numerator: Net loss $ (3,873 ) $ (7,412 ) $ (12,892 ) $ (19,935 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 53,175,684 49,798,994 52,808,412 49,467,667 Net loss per share: Basic and diluted $ (0.07 ) $ (0.15 ) $ (0.24 ) $ (0.40 ) |
Schedule of Antidilutive Securities Excluded from the Computation of Diluted Net Loss Per Share | The Company excluded the following period-end outstanding common stock equivalents from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: As of June 30, 2017 2016 Shares of common stock issuable under the Equity Incentive Plan 10,396,671 12,397,881 Employee Stock Purchase Plan 96,199 99,054 Total 10,492,870 12,496,935 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of total revenue by geographic region | The following table represents the Company's revenue based on the billing address of the respective channel partners: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Americas $ 29,141 $ 28,685 $ 53,059 $ 53,045 Europe, Middle East and Africa 10,397 12,143 20,230 24,157 Asia Pacific 2,762 6,803 5,362 10,557 Total revenues $ 42,300 $ 47,631 $ 78,651 $ 87,759 |
Schedule of property and equipment, net, by location | Property and equipment, net by location is summarized as follows: June 30, December 31, 2017 2016 (in thousands) United States $ 6,446 $ 7,685 People's Republic of China 1,014 1,096 United Kingdom 178 227 Total property and equipment, net $ 7,638 $ 9,008 |
DESCRIPTION OF BUSINESS AND S26
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Adoption of New Accounting Pronouncements (Details) $ in Millions | Jan. 01, 2017USD ($) |
Accounting Standards Update 2016-09 | Accumulated Deficit | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of new accounting principle in period of adoption | $ 0.2 |
DESCRIPTION OF BUSINESS AND S27
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk and Significant Customers (Details) - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
VAD A | Sales | |||||
Revenue, Major Customer [Line Items] | |||||
Significant customer, as a percentage | 13.90% | 13.90% | 14.40% | 13.60% | |
VAD A | Accounts Receivable | |||||
Revenue, Major Customer [Line Items] | |||||
Significant customer, as a percentage | 19.80% | 22.40% | |||
VAD B | Sales | |||||
Revenue, Major Customer [Line Items] | |||||
Significant customer, as a percentage | 18.20% | 12.60% | 18.80% | ||
VAD B | Accounts Receivable | |||||
Revenue, Major Customer [Line Items] | |||||
Significant customer, as a percentage | 15.50% | 14.40% | |||
VAD C [Member] | Accounts Receivable | |||||
Revenue, Major Customer [Line Items] | |||||
Significant customer, as a percentage | 12.30% | 15.30% |
FAIR VALUE DISCLOSURE (Details)
FAIR VALUE DISCLOSURE (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 19,241 | $ 25,244 |
Total cash equivalents and short-term investments, Amortized Cost | 64,892 | 67,683 |
Total cash equivalents and short-term investments, Gross Unrealized Gain (Loss) | (38) | (31) |
Total cash equivalents and short-term investments, Fair Value | 64,854 | 67,652 |
Short-term Investments | 45,613 | 42,408 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents, Amortized Cost | 14,249 | 25,244 |
Cash equivalents | 14,249 | 25,244 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents, Amortized Cost | 14,249 | 25,244 |
Cash equivalents | 14,249 | 25,244 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,992 | 0 |
Short-term investments | 50,605 | 42,408 |
Securities, Amortized cost | 50,643 | 42,439 |
Securities, Gross Unrealized Gain (Loss) | (38) | (31) |
Short-term Investments | 45,613 | 42,408 |
Level 2 | U.S.agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,995 | |
Level 2 | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,997 | |
Level 2 | U.S. treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 22,480 | 22,497 |
Securities, Amortized cost | 22,507 | 22,516 |
Securities, Gross Unrealized Gain (Loss) | (27) | (19) |
Short-term Investments | 22,480 | 22,497 |
Level 2 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 13,163 | 7,341 |
Securities, Amortized cost | 13,174 | 7,353 |
Securities, Gross Unrealized Gain (Loss) | (11) | (12) |
Short-term Investments | 13,163 | 7,341 |
Level 2 | U.S.agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 5,991 | |
Securities, Amortized cost | 5,991 | |
Short-term Investments | 2,996 | |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 8,971 | 12,570 |
Securities, Amortized cost | 8,971 | 12,570 |
Securities, Gross Unrealized Gain (Loss) | 0 | 0 |
Short-term Investments | $ 6,974 | $ 12,570 |
CONSOLIDATED BALANCE SHEET CO29
CONSOLIDATED BALANCE SHEET COMPONENTS - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Prepaid expenses and other current assets [Abstract] | ||
Deferred Sales Commission | $ 3,281 | $ 2,932 |
Prepaid expenses | 2,731 | 2,032 |
Other | 1,116 | 1,325 |
Prepaid expenses and other current assets | $ 7,128 | $ 6,289 |
CONSOLIDATED BALANCE SHEET CO30
CONSOLIDATED BALANCE SHEET COMPONENTS - Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Property and Equipment [Line Items] | |||||
Property and equipment, gross | $ 17,720 | $ 17,720 | $ 17,529 | ||
Less: Accumulated depreciation and amortization | (10,082) | (10,082) | (8,521) | ||
Property and equipment, net | 7,638 | 7,638 | 9,008 | ||
Capital Leased Assets, Gross | 1,200 | 1,200 | 1,200 | ||
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 300 | 300 | 200 | ||
Depreciation and amortization expense | 800 | $ 900 | 1,600 | $ 1,800 | |
Computer and other equipment | |||||
Property and Equipment [Line Items] | |||||
Property and equipment, gross | 1,902 | $ 1,902 | 1,920 | ||
Estimated useful lives | 3 years | ||||
Manufacturing, research and development laboratory equipment | |||||
Property and Equipment [Line Items] | |||||
Property and equipment, gross | 4,540 | $ 4,540 | 4,314 | ||
Estimated useful lives | 3 years | ||||
Software and Software Development Costs [Member] | |||||
Property and Equipment [Line Items] | |||||
Property and equipment, gross | 8,217 | $ 8,217 | 8,217 | ||
Estimated useful lives | 5 years | ||||
Software and Software Development Costs [Member] | Minimum | |||||
Property and Equipment [Line Items] | |||||
Estimated useful lives | 2 years | ||||
Software and Software Development Costs [Member] | Maximum | |||||
Property and Equipment [Line Items] | |||||
Estimated useful lives | 5 years | ||||
Office furniture and equipment | |||||
Property and Equipment [Line Items] | |||||
Property and equipment, gross | 2,053 | $ 2,053 | 2,070 | ||
Office furniture and equipment | Minimum | |||||
Property and Equipment [Line Items] | |||||
Estimated useful lives | 3 years | ||||
Office furniture and equipment | Maximum | |||||
Property and Equipment [Line Items] | |||||
Estimated useful lives | 7 years | ||||
Leasehold improvements | |||||
Property and Equipment [Line Items] | |||||
Property and equipment, gross | $ 1,008 | $ 1,008 | $ 1,008 |
CONSOLIDATED BALANCE SHEET CO31
CONSOLIDATED BALANCE SHEET COMPONENTS Other assets (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jan. 31, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | |
Investment [Line Items] | |||
Deferred sales commissions, non-current portion | $ 3,338 | $ 3,115 | |
Investment in privately held company | 1,500 | 1,500 | |
Other | 537 | 485 | |
Total other assets | $ 5,375 | $ 5,100 | |
Convertible Note [Member] | |||
Investment [Line Items] | |||
Convertible note | $ 1,500 | ||
Minimum holding period | 12 months |
CONSOLIDATED BALANCE SHEET CO32
CONSOLIDATED BALANCE SHEET COMPONENTS - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Accrued Liabilities, Current [Abstract] | |||
Accrued compensation | $ 7,417 | $ 7,230 | |
Accrued expenses and other liabilities | 1,022 | 1,445 | |
Warranty liability, current portion | 575 | 625 | $ 670 |
Total accrued liabilities | $ 9,014 | $ 9,300 |
CONSOLIDATED BALANCE SHEET CO33
CONSOLIDATED BALANCE SHEET COMPONENTS - Components of Deferred Revenue (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Deferred Revenue, Reported As: [Line Items] | ||
Deferred revenue | $ 67,911 | $ 65,904 |
Less: current portion of deferred revenue | 32,954 | 31,727 |
Non-current portion of deferred revenue | 34,957 | 34,177 |
Products | ||
Deferred Revenue, Reported As: [Line Items] | ||
Deferred revenue | 1,774 | 1,220 |
Subscription and support | ||
Deferred Revenue, Reported As: [Line Items] | ||
Deferred revenue | $ 66,137 | $ 64,684 |
CONSOLIDATED BALANCE SHEET CO34
CONSOLIDATED BALANCE SHEET COMPONENTS - Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||||
Beginning balance | $ 857 | $ 997 | $ 975 | $ 978 | |
Charges to operations | 230 | 199 | 351 | 373 | |
Obligations fulfilled | (142) | (103) | (339) | (207) | |
Changes in existing warranty | (15) | (59) | (57) | (110) | |
Total product warranties | 930 | 1,034 | 930 | 1,034 | |
Current portion | 575 | 670 | 575 | 670 | $ 625 |
Non-current portion | $ 355 | $ 364 | $ 355 | $ 364 |
DEBT (Details)
DEBT (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2015 | Jun. 30, 2017USD ($) | Jun. 30, 2016 | Jun. 30, 2017USD ($) | Jun. 30, 2016 | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Expiration Period | 2 years | |||||
Debt, non-current | $ 20,000,000 | $ 20,000,000 | $ 0 | |||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 20,000,000 | $ 20,000,000 | ||||
Required liquidity ratio | 1.25 | |||||
Requitred minimum cash balance as of the last day of each month | 35,000,000 | $ 35,000,000 | ||||
Potential increase in interest rate | 5.00% | |||||
Debt, non-current | $ 20,000,000 | $ 20,000,000 | ||||
Revolving Credit Facility | Weighted Average | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate during the period | 2.90% | 2.22% | 2.74% | 2.37% | ||
Revolving Credit Facility | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Revolving Credit Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.75% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Operating Leases and Purchase Commitments (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Operating Leases, Future Minimum Payments [Abstract] | |
2017 (remaining six months) | $ 875 |
2,018 | 1,720 |
2,019 | 1,262 |
2,020 | 883 |
2,021 | 887 |
Thereafter | 1,315 |
Total future minimum lease payments | $ 6,942 |
COMMITMENTS AND CONTINGENCIES C
COMMITMENTS AND CONTINGENCIES Capital Lease Obligations (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2017 (remaining six months) | $ 93 |
2,018 | 185 |
2,019 | 176 |
2,020 | 171 |
2,021 | 168 |
Thereafter | 244 |
Total | 1,037 |
Less: current portion of capital lease obligations | 183 |
Non-current portion of capital lease obligations | $ 854 |
COMMITMENTS AND CONTINGENCIES38
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Operating Leases, Rent Expense | $ 0.5 | $ 0.8 | $ 1 | $ 1.4 | |
Inventories | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Amount of manufacturing commitment | $ 6.2 | $ 9.5 |
STOCKHOLDERS' EQUITY - Common S
STOCKHOLDERS' EQUITY - Common Stock Reserved for Future Issuance (Details) - shares | Jun. 30, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||
Total reserved shares of common stock for future issuance | 19,054,869 | |
Employee Stock Options and Restricted Stock Units | ||
Class of Stock [Line Items] | ||
Options and Restricted Stock Units issued and outstanding | 10,396,671 | |
2014 Equity Incentive Plan | ||
Class of Stock [Line Items] | ||
Shares reserved for issuance under share-based compensation plan | 6,645,767 | 5,116,753 |
Employee Stock Purchase Plan | ||
Class of Stock [Line Items] | ||
Shares reserved for issuance under share-based compensation plan | 2,012,431 |
STOCK-BASED COMPENSATION - Equi
STOCK-BASED COMPENSATION - Equity Incentive Plan (Details) - 2014 Equity Incentive Plan - shares | Jan. 01, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Increase to shares of common stock reserved for issuance | 2,612,263 | 2,612,263 | |
Shares reserved for issuance under share-based compensation plan | 6,645,767 | 5,116,753 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Payments Related to Tax Withholding for Share-based Compensation | $ 100 | $ 200 | $ 451 | $ 540 | ||
Shares Available for Grant | ||||||
Options granted (shares) | 0 | |||||
Options canceled (shares) | 905,082 | |||||
Number of Shares | ||||||
Beginning balance (shares) | 6,219,774 | 6,219,774 | ||||
Options granted (shares) | 0 | |||||
Options exercised (shares) | (396,865) | |||||
Options forfeited (shares) | (905,082) | |||||
Ending balance (shares) | 4,917,827 | 4,917,827 | 6,219,774 | |||
Options Exercisable (shares) | 3,743,487 | 3,743,487 | ||||
Weighted Average Exercise Price | ||||||
Beginning balance (in dollars per share) | $ 6.15 | $ 6.15 | ||||
Options granted (in dollars per share) | 0 | |||||
Options exercised (in dollars per share) | 1.75 | |||||
Options forfeited (in dollars per share) | 7.16 | |||||
Ending balance (in dollars per share) | $ 6.31 | 6.31 | $ 6.15 | |||
Options exercisable (in dollars per share) | $ 6.11 | $ 6.11 | ||||
Weighted Average Remaining Contractual Life | ||||||
Weighted average remaining contractual life, period start | 5 years 10 months 6 days | 6 years 5 months 1 day | ||||
Weighted average remaining contractual life, period end | 5 years 10 months 6 days | 6 years 5 months 1 day | ||||
Weighted average life, options exercisable | 5 years 1 month 24 days | |||||
Aggregate Intrinsic Value | ||||||
Aggregate intrinsic value, period start | $ 6,056 | $ 6,056 | ||||
Aggregate intrinsic value, period end | $ 3,694 | 3,694 | $ 6,056 | |||
Aggregate intrinsic value, options exercisable | 3,689 | 3,689 | ||||
Weighted average grant date fair value per share of stock options (in dollars per share) | $ 3.22 | $ 3.16 | ||||
Aggregate grant date fair value | $ 2,600 | $ 2,800 | ||||
Total intrinsic value of options exercised | 800 | 300 | 1,200 | 700 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 900 | $ 1,300 | $ 1,900 | $ 4,500 | ||
2014 Equity Incentive Plan | ||||||
Shares Available for Grant | ||||||
Beginning balance (shares) | 5,116,753 | 5,116,753 | ||||
Authorized (shares) | 2,612,263 | 2,612,263 | ||||
Options granted (shares) | 0 | |||||
Options canceled (shares) | 905,082 | |||||
Awards granted (shares) | (3,191,974) | |||||
Awards canceled (shares) | 1,203,643 | |||||
Ending balance (shares) | 6,645,767 | 6,645,767 | 5,116,753 | |||
Number of Shares | ||||||
Options granted (shares) | 0 | |||||
Options forfeited (shares) | (905,082) |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract] | ||||
Aggregate grant date fair value | $ 2,600 | $ 2,800 | ||
Payment for shares withheld for tax withholdings on vesting of restricted stock units | $ (100) | $ (200) | $ (451) | $ (540) |
PBRSU to common stock, conversion ratio | 100.00% | 100.00% | ||
Market-Based Restricted Stock Unit, Conversion Ratio | 100.00% | 100.00% | ||
Common Stock | ||||
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract] | ||||
Shares repurchased for tax withholdings on vesting of RSUs | 25,209 | 36,758 | 95,577 | 95,548 |
2014 Equity Incentive Plan | ||||
Restricted Stock Units, Number of Shares [Roll Forward] | ||||
Awards granted | 3,191,974 | |||
Awards canceled | (1,203,643) | |||
Restricted Stock Units (RSUs) | ||||
Restricted Stock Units, Number of Shares [Roll Forward] | ||||
Beginning balance | 4,365,670 | |||
Awards granted | 3,191,974 | |||
Awards vested | (970,734) | |||
Awards canceled | (1,108,066) | |||
Ending balance | 5,478,844 | 5,478,844 | ||
Restricted Stock Units (RSUs) | 2014 Equity Incentive Plan | ||||
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract] | ||||
Beginning balance (in dollars per share) | $ 6.23 | |||
Awards granted (in dollars per share) | $ 4.96 | $ 6.43 | 4.97 | $ 6.24 |
Awards vested (in dollars per share) | 5.09 | |||
Awards canceled (in dollars per share) | 6.20 | |||
Ending balance (in dollars per share) | $ 5.55 | $ 5.55 | ||
Aggregate grant date fair value | $ 11,800 | $ 16,900 | $ 15,900 | $ 19,000 |
Fair value of shares vested | $ 2,400 | $ 3,400 | $ 4,600 | $ 5,900 |
Restricted Stock Units (RSUs) | Vesting period, one year | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Restricted Stock Units (RSUs) | Vesting period, three years | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
PBRSUs | ||||
Restricted Stock Units, Number of Shares [Roll Forward] | ||||
Awards granted | 378,644 | |||
Market-Based Restricted Stock Unit [Member] | ||||
Restricted Stock Units, Number of Shares [Roll Forward] | ||||
Awards granted | 358,000 | |||
Restricted Stock Units, Weighted Average Grant Date Fair Value [Abstract] | ||||
Awards granted (in dollars per share) | $ 4.18 |
STOCK-BASED COMPENSATION - Empl
STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) - USD ($) | Jan. 01, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 34.00% | 35.00% | 34.00% | 35.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 39.00% | 55.30% | 39.00% | 55.30% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.60% | 0.07% | 0.60% | 0.07% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 1.07% | 0.51% | 1.07% | 0.51% | |
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for issuance under share-based compensation plan | 2,012,431 | 2,012,431 | |||
Employee Stock Purchase Plan | ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Increase to shares of common stock reserved for issuance | 1,000,000 | ||||
Shares reserved for issuance under share-based compensation plan | 2,012,431 | 2,012,431 | |||
Offering period, term | 1 year | ||||
Percent of fair market value of common stock the price at which common stock is purchased | 85.00% | ||||
Maximum amount any participant may purchase per calendar year | $ 25,000 | ||||
Maximum number of shares to be purchased per employee in any six-month period | 5,000 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 563,174 | 646,278 | |||
Minimum | ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected term (in years) | 6 months | 6 months | 6 months | 6 months | |
Maximum | ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected term (in years) | 1 year | 2 years | 1 year | 2 years |
STOCK-BASED COMPENSATION - St44
STOCK-BASED COMPENSATION - Stock Repurchase Program (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 18 Months Ended | |
Feb. 29, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Amount authorized under stock repurchase program | $ 10,000,000 | |||
Stock repurchase program expiration date | Jun. 30, 2018 | |||
Number of shares repurchased in period | 208,779 | 261,515 | 573,406 | |
Value of shares repurchased in period | $ 1,000,000 | $ 1,500,000 | $ 3,200,000 | |
Average cost of repurchased shares (in usd per share) | $ 4.88 | $ 5.55 | $ 5.51 | |
Remaining amount available for repurchases under the program | $ 6,800,000 | $ 6,800,000 |
STOCK-BASED COMPENSATION - Valu
STOCK-BASED COMPENSATION - Valuation Assumptions (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 9 months 7 days | 5 years 9 months 11 days | ||
Expected volatility | 55.11% | 55.16% | ||
Risk free interest rate | 1.50% | 1.50% | ||
Market-Based Restricted Stock Unit [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | 46.36% | 53.00% | 46.36% | 53.00% |
Risk free interest rate | 1.45% | 1.07% | 1.45% | 1.07% |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility, minimum | 34.00% | 35.00% | 34.00% | 35.00% |
Expected volatility, maximum | 39.00% | 55.30% | 39.00% | 55.30% |
Risk free interest rate, minimum | 0.60% | 0.07% | 0.60% | 0.07% |
Risk free interest rate, maximum | 1.07% | 0.51% | 1.07% | 0.51% |
ESPP | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 6 months | 6 months | 6 months | 6 months |
ESPP | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 1 year | 2 years | 1 year | 2 years |
STOCK-BASED COMPENSATION - St46
STOCK-BASED COMPENSATION - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 4,444 | $ 5,454 | $ 7,997 | $ 10,350 |
Employee Stock Option | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 820 | 1,185 | 1,703 | 2,331 |
Unrecognized stock-based compensation expense | 3,900 | $ 3,900 | ||
Period of recognition of unrecognized stock-based compensation expense | 1 year 9 months 26 days | |||
Restricted Stock Units (RSUs) | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 3,193 | 3,544 | $ 5,463 | 6,691 |
Unrecognized stock-based compensation expense | 26,900 | $ 26,900 | ||
Period of recognition of unrecognized stock-based compensation expense | 2 years 2 months 27 days | |||
ESPP | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 431 | 725 | $ 831 | 1,328 |
Unrecognized stock-based compensation expense | 1,000 | $ 1,000 | ||
Period of recognition of unrecognized stock-based compensation expense | 5 months 1 day | |||
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 276 | 321 | $ 547 | 593 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 1,065 | 1,366 | 1,753 | 2,711 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 1,501 | 2,063 | 2,795 | 3,831 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 1,602 | $ 1,704 | $ 2,902 | $ 3,215 |
NET LOSS PER SHARE - Calculatio
NET LOSS PER SHARE - Calculation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | ||||
Net loss | $ (3,873) | $ (7,412) | $ (12,892) | $ (19,935) |
Denominator: | ||||
Weighted-average shares used to compute net loss per share, basic and diluted | 53,175,684 | 49,798,994 | 52,808,412 | 49,467,667 |
Basic (in dollars per share) | $ (0.07) | $ (0.15) | $ (0.24) | $ (0.40) |
NET LOSS PER SHARE - Antidiluti
NET LOSS PER SHARE - Antidilutive Securities (Details) - shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the diluted per share calculation | 10,492,870 | 12,496,935 |
Shares of common stock issuable under the Equity Incentive Plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the diluted per share calculation | 10,396,671 | 12,397,881 |
Employee Stock Purchase Plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the diluted per share calculation | 96,199 | 99,054 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ (197) | $ (68) | $ (294) | $ (213) |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | |
Segment Reporting [Abstract] | ||||
Number of operating segments | segment | 1 | |||
Number of Reportable Segments | segment | 1 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net revenues | $ 42,300 | $ 47,631 | $ 78,651 | $ 87,759 |
Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net revenues | 29,141 | 28,685 | 53,059 | 53,045 |
Europe, Middle East and Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net revenues | 10,397 | 12,143 | 20,230 | 24,157 |
Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net revenues | 2,762 | 6,803 | 5,362 | 10,557 |
Geographic Concentration Risk | United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues from sales | $ 27,200 | $ 27,400 | $ 49,200 | $ 50,200 |
SEGMENT INFORMATION - Property,
SEGMENT INFORMATION - Property, Plant, and Equipment by Geographic Region (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 7,638 | $ 9,008 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 6,446 | 7,685 |
People's Republic of China | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 1,014 | 1,096 |
United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 178 | $ 227 |